Section 17(1)- Definition of Salary Under the Income Tax Act

Section 17(1) of the Income Tax Act 1961 defines the 'salary' and mentions the several components that are received by an employee in India in his/her total compensation income.

Yes, the pension you received from your former company or firm is stated as income from salary. However, the pension you receive from an annuity policy will be mentioned under other sources.

According to section 17(1), salary is a monetary compensation that an employer pays to their employee for his/her services rendered. Information about such income should be mentioned in Form 16, and in the ITR 2 should be stated under Schedule S- Salary.

Yes, some perquisites or benefits in lieu of salary are subject to taxation under section 17(1). However, there are also some perquisites that are completely or partially tax-exempt.

Under section 17(1) and 17(2) of the Income Tax Act, the employer is accountable for deducting TDS on salary, perquisites, and benefits in lieu of salary. The tax deducted is then deposited within the mentioned due dates to the income tax officials.